Lifecycle Processes
Using PDVSM to Better Characterize Waste and
Value in Complex Product Development
Motivation
• About 80% of a product’s lifecycle cost is determined
during the Product Development (PD) process, but only
about 12% of the time that this process operates is
value being added:
12%
11%
62%
15%
Value-added activity
Job idle
Remote
locations
Information
hunting
4
3
Information is
waiting for people
Waiting for capacity
available (human or
machine)
Waiting for data, answers,
specifications,
requirements, test results
approvals, decisions,
releases, review events,
signs
Poor
compatibility
Poor
capability
Low
capacity
Graphic modified and used with
permission of Christoph Bauch
Excessive
transactions
1
High system
variability
5
Transport/
Handoffs
Inventory
Time
WASTE!
Motivation
Waiting
6
Opportunity/
Potential
Flexibility
Lack of
system
discipline
Incompetence/
poor training
7
Waste Drivers
- Main Categories -
Unclear
rules
Unclear goals
and
objectives
Unclear roles,
responsibilities and
rights
Interviews with engineers and managers to learn
insider perspectives of value and waste
•
Poor synchronisation as
regards time and capacity
Defects
Deficient
information
quality
Reinvention
Identify wastes using Bauch waste categories
•
Identify real flow of value using Slack’s and
Graebsch’s thesis work
Expected Outcomes
•
Erroneous
data and
information
Poor design
re-use
Waste Drivers
- Sub-categories -
Poor schedule
discipline
Insufficient
readiness to
cooperate
8
•
Poor synchronisation as
regards contents
resources
9
Create PDVSM for each program
Over-dissemination
of information
Overproduction/
Unsynchronized
processes
What can be wasted?
10 Limited IT
•
Redundant
tasks
Information/
Knowledge
Quality
Follow two ongoing PD programs at an LAI member
company
Excessive
data storage
Movement
Resources/
Capacity
•
Large
batch
sizes
Unnecessary
testing equipment
and prototypes
Queues on the
critical path
Over processing
Money/
Investment
2
Exceeding
capacity
utilization
Excessive
approvals
Inappropriate
use of
competency
Stop and go tasks/
Task switching
• Incomplete of understanding and
characterization of value creation
and wastes in real-world PD
processes hinders PD process
improvement (and PDVSM usage)
+  Created relationship
among waste drivers
to create a waste
elimination
sequence strategy
Unnecessary
features and
processes
Lack of
direct
access
Ineffective
Communication
• Product Development Value Stream Mapping
(PDVSM) offers a framework for understanding
and improving the PD process
+  LAI product: PDVSM Manual in beta release
+  Has been tested on several programs
• Christoph Bauch synthesized
published PD waste
definitions to create waste
driver hierarchy shown
Excessive
data traffic
Necessary non-value added activity
Pure waste activity
Use of
inappropriate
tools/ methods
Unnecessary detail
and accuracy
Handoffs
Notional combined
value assessment of
a typical aerospace
engineering job
(% time)
Research Implementation
Ryan Whitaker: ryanw@mit.edu
Poor testing
and
verification
Poor
knowledge
re-use
Better understanding and
characterization of value and wastes
in PD, contributing to a more usable
PDVSM framework
•  Validation of usefulness of
Bauch waste categorization for
real PD programs
Christoph Bauch’s PD Waste Drivers Categorization
•  Possible topological and/
or symbolic additions to
PDVSM
Sample Portion of Current State Value Stream Map of One Research Project:
Systems Engineering
Issues UNOFFICIAL
Performance
Specifications
Major New TopLevel
Requirement
Added
Special Circuit
Design Task
Electrical
Engineering
Group
+  Validating
on real
programs
currently
Initial
Requirements
Development
Scope Change:
Prototype Only
Hardware “Deliverable” Status-->
Extra Rounds of Approvals
Advanced
Design Review
Circuit Design
Second Iteration
Circuit Design
Released for
Prototype
Fabrication
•  Last but not least:
Master’s Thesis in
Engineering Systems
Division (Aug 2005)
PDR
Prep
Perform
Updated
Analysis
Develop
Preliminary
Schematics
Develop
Performance
Budgets
•  Published paper
Perform
Analysis
Perform
Analysis
Develop Notional
Architecture
Preliminary
Design Review
Peer
Review
Develop Key
Suppliers
Update
Requirements
Interface and Outline Drawings
Definition
Mechanical
Engineering
Group
Preliminary MechE
Requirements
Development
Preliminary
MechE
Architectural
Definition
Perform
Architectural
Trade Studies
Preliminary
Design
Model
Generation
Preliminary
Structural
and Thermal
Analyses
PDR
Prep
Peer
Review
Update MechE Requirements (continual)
Research Project Timeline
Background Research
9/03-6/04
Identify Contacts
6/04
Initial Talks w/ Contacts
7/04
Projects Identified
9/04
Learning About Projects
9/04-2/05
Create PDVSMs and Iterate
1/05-3/05
Identify Wastes and Value
2/05-3/05
Write Thesis
4/05-6/05
LAI Company Thesis Review
6/05-7/05
Thesis Revision
7/05-8/05
Graduate!
8/05